1.On December 31, of the current year, a company's unadjusted trial balance revealed the following:

Accounts receivable of $185,600; Sales Revenue of $1,280,000; (75% were on credit), and Allowance for Doubtful Accounts of $1,600 (credit balance).

Prepare the adjusting journal entry to record the estimate for bad debts assuming:

1.6.0% of the accounts receivable balance is assumed to be uncollectible.

2. Bad debts expense is estimated to be 1.5% of credit sales.

3. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet after adjustment.

4. Prepare the entry to write off a $1,500 account receivable on January 1 of the next year.

5. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet immediately after writing off the account.